With the cost of college rising faster than the temperature and the job market trailing coldly behind, everyone’s wondering: is a college degree worth its price? The Brookings Institute, a Washington, D.C.-based nonprofit dedicated to independent research, had the same question. And they answered it.
Read the full report, or catch the highlights:
– Plan on spending $100,000. When all is said and done, the average cost of college in the USA is more than a hundred grand, a hefty price tag that includes what Brookings calls the “opportunity cost” of not working during school. To put that into perspective, that’s about 33,000 Big Macs or 200 iPad 2’s. But remember that’s only an average and many students are paying more.
– View your tuition bill as an investment that returns at a rate of 15.2% per year, which is twice the expected return of the stock market and more than five times the return on corporate bonds, gold, long-term government bonds, or home ownership. This return manifests itself in the form of a higher salary.
– Stay wary of the averages, as they may not apply to you. This is especially true if you’ve declared a low-paying major but are attending a high-cost school, or if you have a lot of high-interest loans. So make sure you’re educated on how you’re going to pay for your education and how much you can expect to earn when it’s finished before you get roped into a tuition bill you can’t afford and a set of loans you won’t be able to pay back.
Ultimately the data confirms what your teachers have always been saying: college is the smart road. But in this economic climate of huge tuition bills, meager savings, and tight lending practices, paying for college might seem like climbing a buttered ladder: certainly difficult, and maybe dangerous. But that’s where SimpleTuition can help. Start by comparing your private student loan options and get educated.